Analysis of various market drivers and regulations governing the Czech Republic’s cards and payments industry

Detailed analysis of the marketing strategies adopted for selling debit, credit and prepaid cards used by banks and other institutions in the market

Comprehensive analysis of consumer attitudes and buying preferences for cards

The competitive landscape of the Czech Republic’s cards and payments industry

Executive summary

Czech GDP contracted by -4.51% in 2009, impacting the overall banking and financial services industry. The economy recovered in 2010 and 2011, but contracted again in 2012. However, it is expected to record robust growth over the forecast period, with real GDP growth rising from 1.48% in 2014 to 2.43% in 2018. Improved economic indicators, including GDP, rising per capita income and low inflation rates, are expected to support consumer confidence and increase spending, resulting in the increased scope of card-based transactions. This will be further supported by the rising online and mobile penetration, the emergence of EMV-enabled cards, and near field communication (NFC) technology. A number of innovations are taking place in the field of contactless payments and are being adopted by customers at a rapid rate.

The Czech card payments channel registered positive growth during the review period (2009–2013). The channel posted a CAGR of 5.46% and had 16.4 million cards in circulation in 2013. In value terms, the card payments channel valued CZK934.3 billion (US$48.0 billion) in 2013. The debit cards category held the highest share with 47.4% of cards in circulation in 2013. The debit cards category is expected to maintain the highest share of total payments, posting a CAGR of 1.29% over the forecast period (2014–2018); rising from 7.9 million cards in 2014 to 8.4 million in 2018. The prepaid cards category had the second-largest share with 37.3% in 2013, followed by credit cards with 13.7%. Over the forecast period, the number of prepaid cards in circulation is expected to increase from 6.5 million in 2014 to 7.7 million in 2018, at the highest forecast-period CAGR of 4.30%. The charge card category held the smallest share of 1.5% in 2013.

Scope

This report provides a comprehensive analysis of the Czech Republic’s cards and payments industry.

It provides current values for the Czech Republic’s cards and payments industry for 2013, and forecast figures for 2018.

It details the different economic, infrastructural and business drivers affecting the Czech Republic’s cards and payments industry.

It outlines the current regulatory framework in the industry.

It details the marketing strategies used by various banks and other institutions.

It profiles the major banks in the Czech Republic’s cards and payments industry.

Reasons to buy

Make strategic business decisions using top-level historic and forecast market data related to the Czech Republic’s cards and payments industry and each market within it.

Understand the key market trends and growth opportunities within the Czech Republic’s cards and payments industry.

Assess the competitive dynamics in the Czech Republic’s cards and payments industry.

Gain insights in to the marketing strategies used for selling various card types in the Czech Republic.

The Czech card payments channel registered positive growth during the review period (2009–2013). The channel posted a CAGR of 5.46% and had 16.4 million cards in circulation in 2013. In value terms, the card payments channel valued CZK934.3 billion (US$48.0 billion) in 2013. The debit cards category held the highest share with 47.4% of cards in circulation in 2013. The debit cards category is expected to maintain the highest share of total payments, posting a CAGR of 1.29% over the forecast period (2014–2018); rising from 7.9 million cards in 2014 to 8.4 million in 2018.

Stickers are a new innovation in the area of contactless payments. Contactless payment stickers are held in front of the payment terminal to make an automatic transaction, improving the convenience, speed and security of card payments. The adoption of contactless payments in the Czech Republic is supporting consumer acceptance of stickers. The number of contactless payments increased from 470,642 in 2011 to 1.5 million in 2013, and is expected to increase further at a high forecast-period CAGR of 27.2%.

Contactless technology has advanced and increased in popularity since its implementation in the Czech Republic in 2011, primarily due to improved convenience, speed and security. The number of contactless payments increased from 470,642 in 2011 to 1.5 million in 2013. Large and small merchants contribute to the growth by offering contactless payment facilities to customers. Over the forecast period, the number of contactless payments is expected to record a high CAGR of 27.19%, rising from 2.0 million in 2014 to 5.3 million in 2018.

The SIM card launched by Komerční Banka, Visa Europe, Samsung and Telefónica in 2012 is an innovation in the area of mobile payments. The SIM card can be used to purchase products and services. The increasing capabilities of smartphone devices, a rise in mobile device applications and improved security measures for transactions have been instrumental in driving mobile commerce in the country. The rising volume of smartphones and increasing mobile internet penetration in the country, coupled with improved banking infrastructure, are expected to increase mobile commerce over the forecast period. The value of m-payments is expected to increase from CZK1.3 billion (US$68.2 million) in 2014 to CZK2.8 billion (US$143.7 million) in 2018, at a forecast-period CAGR of 20.54%.

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